There Is Often a Divergence Between the Shareholder Wealth Maximization

question 29

Multiple Choice

There is often a divergence between the shareholder wealth maximization goal and the actual goals pursued by management. The primary reason for this is ____.

• A) geographical dispersion of shareholders
• B) separation of ownership and control
• C) age differences between managers and shareholders
• D) that both have their own agendas

---

Definitions:

Lowest Denomination

The smallest unit of currency in value within a currency system.

Numeric Amount

A quantity or value represented by numbers, often used in the context of financial or statistical data.

Negotiable Amount

A sum of money whose value can be altered or negotiated, often in the context of financial instruments or payments.

Drawee

The entity, usually a bank, upon which a check or draft is drawn and is responsible for paying the specified amount.